Gold Resource Corporation Reports Q3 2021 Production

2021-10-14 13:36:14

DENVER, CO / ACCESSWIRE / October 14, 2021 / Gold Resource Corporation (NYSE American:GORO) (the “Company”) today announced preliminary third quarter 2021 production results.

Third Quarter 2021 Production Highlights

  • 9,170 gold equivalent ounces (“Au eq oz”) sold, inclusive of 5,809 gold ounces (“Au oz”) and 255,394 silver ounces (“Ag oz”) sold
  • 268 tonnes of payable copper
  • 1,550 tonnes of payable lead
  • 3,059 tonnes of payable zinc

Allen Palmiere, President and CEO said “Despite a self-imposed temporary shutdown due to COVID-19, third quarter production results were favorable and are expected to continue in their upward trend in the fourth quarter. Addressing ground support issues allowed us to get back into the Soledad vein which has resulted in increased gold grades and recoveries, as expected. The temporary ramp down of operations in August was deemed necessary to keep employees and the surrounding communities safe as Mexico and our neighboring communities endured a spike in COVID-19 cases. We are very pleased with the response by our operations team to this challenge as the case rates have dropped dramatically allowing us to resume almost normal operations.”

Sales Statistics



















 

  For the three months ended September 30,     For the nine months ended September 30,  

 

  2021     2020     2021     2020  

Metal sold

                       

Gold (ozs.)

    5,809       3,619       16,525       11,153  

Silver (ozs.)

    255,394       316,993       778,776       862,087  

Copper (tonnes)

    268       447       1,015       1,090  

Lead (tonnes)

    1,550       1,849       3,940       4,827  

Zinc (tonnes)

    3,059       4,586       9,386       11,534  

Average metal prices realized(1)

                               

Gold ($ per oz.)

    1,762       1,887       1,790       1,766  

Silver ($ per oz.)

    23.19       25.47       25.63       20.09  

Copper ($ per tonne)

    9,092       6,711       9,466       5,954  

Lead ($ per tonne)

    2,397       1,902       2,231       1,779  

Zinc ($ per tonne)

    3,032       2,392       2,924       2,114  

Precious metal gold equivalent ounces sold

                               

Gold Ounces

    5,809       3,619       16,525       11,153  

Gold Equivalent Ounces from Silver

    3,361       4,279       11,151       9,807  

Total AuEq Ounces

    9,170       7,898       27,676       20,960  

(1) Average metal prices realized vary from the market metal prices due to final settlement adjustments from our provisional invoices. Our average metal prices realized will therefore differ from the average market metal prices in most cases.

Production Statistics



























    For the three months ended September 30,     For the nine months ended September 30,  
    2021     2020     2021     2020  

Arista Mine

                       

Tonnes Milled

    97,806       136,618       351,572       373,394  

Average Gold Grade (g/t)

    2.68       1.25       2.04       1.35  

Average Silver Grade (g/t)

    91       76       82       78  

Average Copper Grade (%)

    0.37       0.40       0.39       0.39  

Average Lead Grade (%)

    2.29       1.93       1.84       1.95  

Average Zinc Grade (%)

    4.79       5.02       4.20       4.85  

Aguila Open Pit Mine

                               

Tonnes Milled

    204       16,913       15,008       34,740  

Average Gold Grade (g/t)

    3.33       1.35       1.88       1.32  

Average Silver Grade (g/t)

    14       32       33       36  

Mirador Mine

                               

Tonnes Milled

                      7,450  

Average Gold Grade (g/t)

                      0.91  

Average Silver Grade (g/t)

                      130  

Combined

                               

Tonnes milled

    98,010       153,531       366,580       415,584  

Tonnes Milled per Day(1)

    1,353       1,745       1,495       1,880  

Metal production (before payable metal deductions)(2)

                               

Gold (ozs.)

    6,933       4,728       19,585       13,619  

Silver (ozs.)

    265,829       324,592       849,418       912,464  

Copper (tonnes)

    284       428       1,093       1.162  

Lead (tonnes)

    1,808       2,157       5,199       5,811  

Zinc (tonnes)

    3,920       5,538       11,980       14,386  

(1) Based on actual days the mill operated during the period.

(2) The difference between what we report as “Metal Production” and “Metal Sold” is attributable to the difference between the quantities of metals contained in the concentrates we produce versus the portion of those metals actually paid for according to the terms of our sales contracts. Differences can also arise from inventory changes related to shipping schedules, or variances in ore grades and recoveries which impact the amount of metals contained in concentrates produced and sold.

Revised Guidance

As a reminder, on September 7, 2021, as part of our update to the market on the temporary ramp down of site operations during late August and early September, we noted that the temporary ramp down combined with our ground control issues in the first half of the year would affect our overall production results. At that time we provided an update to our 2021 annual guidance which we are providing again as follows:








Measure Original 2021 Guidance Updated 2021 Guidance*
Payable Production 19,500 to 21,500 Gold Ounces1,700,000 to 1,800,000 Silver Oz 21,000 to 23,000 Gold Ounces1,100,000 to 1,300,000 Silver Oz
Cash Cost(1) after Co-product Credits(2) per AuEq ounces $210 to $225

$250 – $290

Primarily due to lower co-product credits due to lower base metal tonnages produced and sold

All-in Sustaining Cost(1) after Co-Product Credits(2) per AuEq ounces $800 to $900

Guidance maintained

Lower co-product credits largely offset by less underground development

Capital Investment

$22.0 million to include:

– Gold regrind $1.9M
– Dry Stack Completion $6.2M
– UG Development $9.8M
– Other Sustaining Capital $4.1M

$16.0 million

Primarily due to lower underground development than originally anticipated noted in our 10Q for Q2 2021

Exploration Commitment $7.2 million to include:
– Surface Exploration $1.5M
– Underground Drilling $1.6M
– Exploration Development $4.1M
Guidance maintained
G&A* $6.0 million to $6.5 million, excluding Stock-based Compensation & Restructuring $6.5 million to $6.9 million*, excluding Stock-based Compensation & Restructuring

(1) Calculations of cash cost per after by-product credits per gold equivalent ounce and all-in sustaining cost after by-product credits per gold equivalent ounce are non-GAAP financial measures. Please see the Non-GAAP Measures section of the Management’s Discussion and Analysis and Results of Operations in the Quarterly Report for the period ended June 30, 2021 reported on Form 10Q for a complete reconciliation of the non-GAAP measures.

(2) Co-product credits are based on approximately 7,200 tonnes of lead sold at an $0.90 per pound metal price (originally 8,000 tonnes of lead sold at $0.80 per pound), approximately 1,500 tonnes of copper sold at a $4.00 per pound metal price (originally 1,800 tonnes of copper sold at $2.80 per pound) and 16,000 tonnes of zinc sold at a $1.25 per pound metal price (originally 21,000 tonnes of zinc sold at $1.04 per pound).

*The September 7, 2021 revised guidance does not include any costs associated with the acquisition of Aquila Resources Inc.

Third Quarter Conference Call Reminder

As a reminder, the Company will issue a news release providing a summary of its financial and operating results for the third quarter ended September 30, 2021, on Wednesday, October 27, 2021 after the market close, file its 10Q with the financial and operating results for the period ended September 30, 2021 with EDGAR and host a conference call on Thursday, October 28, 2021 at 11:00 a.m. Eastern Time.

The conference call will be recorded and posted to the Company’s website later in the day following the conclusion of the call. Following prepared remarks, Allen Palmiere, President and Chief Executive Officer, Kim Perry, Chief Financial Officer and Alberto Reyes, Chief Operating Officer will host a live question and answer (Q&A) session. There are two ways to join the conference call.

To join the conference via webcast, please click on the following link:

https://www.webcaster4.com/Webcast/Page/2361/43124.

To join the call via telephone please use one of the following dial-in details:

Participant Toll Free: 888-506-0062

International: 973-528-0011

Entry Code: 552947

Please connect to the conference call at least 10 minutes prior to the start time using one of the connection options listed above.

About GRC:

Gold Resource Corporation is a gold and silver producer, developer, and explorer with its operations centered on the Don David Gold Mine in Oaxaca, Mexico. Under the direction of a new board and senior leadership, the Company focus is to unlock the significant upside potential of its existing infrastructure and large land position surrounding the mine, to close our acquisition of Aquila Resources Inc., and to develop the Back Forty Project in Michigan, USA. For more information, please visit GRC’s website, located at www.goldresourcecorp.com and read the Company’s 10-K for an understanding of the risk factors involved.

CONTACTS
Ann Wilkinson
Vice President, Investor Relations and Corporate Affairs
This email address is being protected from spambots. You need JavaScript enabled to view it.
www.GoldResourcecorp.com

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